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Effective May 2017
These terms apply to any loan that we have provided to you after the effective date of these terms. These terms are subject to any specific terms and conditions set out in any loan contract or any loan document we give you changing the terms and conditions of any loan you have with us.
We may change these terms at any time but must give at least 14 days’ notice before doing so.
Throughout these terms, we will use words that are in bold. These are words with specific meanings. The meanings of these words are set out in clause 24 of these terms. Also:
“you” means each person named in a loan contract as a borrower or covenantor and if there is more than one, each of you separately and all of you together.
“your” has a corresponding meaning.
“you” also includes your executors and administrators
“we” means TSB Bank Limited and our successors, assigns and authorised agents.
“our” and “us” have corresponding meanings.
You agree to make the payments of principal and interest together with any credit fees and other charges set out in any loan contract you have entered into with us.
If we haven’t required payment beforehand, you agree to repay the loan on the repayment date.
If we have provided a loan to you but you have not entered into a loan contract with us in respect of that loan, you will repay the loan when we demand repayment. Until we make demand, you will pay interest on the loan at the variable rate. How often the payments are to be made may be requested by you but needs to be agreed to by us.
If we alter the interest rate we will be entitled to alter the amount of each of the payments payable under a loan contract to ensure that the amount advanced and interest payable under that loan contract is repaid over the same number of payments as set out in that loan contract. We may decide to extend the term of the loan and thereby alter the number of payments payable under the loan contract but we are not obliged to. If any default interest is required to be paid under the terms of a loan contract, we will be entitled to alter the amount of any payment or the number of any payments to take into account that default interest which is required to be paid.
You must pay all money that is payable to us no later than 4.30pm on the date that it is due. If such date is not a working day, payment is to be made on the next working day. If payment is not made by that time, we will have the right to charge default interest. Where you make any payment to us but you have other obligations to us which are overdue, we can apply any such payment to meet those obligations as we see fit.
If your loan is at a variable rate, then you can prepay all of the loan at any time. If you want to make a part prepayment of the loan, then you can do so at any time.
If your loan is at a fixed rate, then you can prepay on any payment date 5% of the unpaid balance or $10,000.00, whichever is the lesser in each calendar year without incurring either a fixed loan prepayment fee or fixed loan prepayment interest. However, if you want to prepay more than that amount in any calendar year, then you will be required to pay fixed loan prepayment interest, as well as a fixed loan prepayment fee as set out in the lending fees schedule.
You must pay the credit fees and other charges as set out in any loan contract that we enter into with you. We can change the amount of any credit fees by giving you no less than five working days’ notice by sending you a disclosure statement or by advertising the change at least once in a daily newspaper that is published in New Plymouth, Auckland, Wellington and Christchurch and displaying the change at our branches and posting the change on our website.
We can debit any credit fee or cost that is payable by you to any of your loan accounts.
You must keep all secured assets insured at all times for the full replacement value or such other amount as we may reasonably require. Your mortgage or other security interest sets out what type of insurance cover is required. Your insurance must be with an insurance company approved by us.
You must keep all such insurances in place until you have repaid all amounts owing to us.
Our interest as mortgagee or otherwise as a secured party, is also to be noted on any insurance policy.
You must provide us with a copy of your certificate of insurance if we ask for it.
Mortgage redemption insurance
If one of the secured assets is a unit titled property, we may require mortgage redemption insurance. If we require such insurance, the insurance policy must be to a level of cover with an insurer approved by us and in our name as insured party.
What about builder’s risk insurance?
If any building works are being carried out on any property you own which has been mortgaged to us, you must take out builder’s risk insurance with an insurer approved by us during the period of any construction. Our interest as mortgagee must also be noted on the policy.
We can ask you for extra security or require you to repay all amounts owing, or in the case of a revolving credit loan or overdraft loan, cancel your ability to borrow more money and reduce the revolving credit limit or overdraft limit if:
You must tell us immediately if you become aware of any reason why we might be able to require you to repay early (giving full details of it and any steps taken or to be taken as a result).
We can review the total amount that we have made available to you under all loan contracts you have with us at any time.
If you sell or change the ownership of any of the secured assets, you agree to repay all money owing to us which is secured by that asset except where we have agreed in writing not to require such payment.
When you have asked us to lend you money, you have provided certain information to us. We have relied on that information provided by you as being correct. The accuracy of that information has affected any decision that we have made to lend money to you. The accuracy of that information is therefore important to us.
You warrant to us that:
You agree to:
We have obligations to protect our staff and customers against harm to their health and safety. When dealing with us, you agree that you will not engage in any conduct or use any language that is abusive or intended to intimidate or harass.
You also agree that you will not be involved in any criminal activity of any nature that may adversely affect our interests.
If you do engage in any such conduct or activity or use any such language, we can require you to repay all amounts owing upon demand being made and, in the case of a revolving credit loan or overdraft loan, cancel your ability to borrow money under such facilities.
Prior to the repayment date, we may advance and re-advance money to you under an overdraft loan.
We will charge a service fee calculated on the difference between the daily unpaid balance of the overdraft loan and the overdraft limit which will be debited on the last day of each month. If the account is in credit, the service fee will be calculated on the overdraft limit.
The terms of the overdraft loan may be reviewed by us at any time.
Prior to the repayment date, we may advance and re-advance monies to you under a revolving credit loan.
We will charge either:
The terms of the revolving credit loan may be reviewed by us at any time.
If you have entered into a loan contract as a trustee of a trust, you certify to us:
The terms of the loan contract will bind you personally unless you are an independent trustee. An independent trustee is a trustee who does not have any right to, or interest in, any of the assets of the trust except in a capacity as a trustee of the trust.
If you are an independent trustee, we will be entitled to recover any unpaid balance from your personal assets if we are unable to recover any unpaid balance from the assets of the trust because your certifications were incorrect. Even if your certifications were incorrect, we will only be entitled to recover from your personal assets the amount we would have recovered from the trust assets had your certifications been correct.
If you are not an independent trustee, we may recover any unpaid balance from your personal assets as well as the trust assets. If you have entered into a revolving credit loan or an overdraft loan as a trustee of a trust, you indemnify us against any claim against loss suffered by the trust that results from the operation of the revolving credit loan or overdraft loan by any party authorised by the trust.
If you are a company and you have entered into a revolving credit loan or an overdraft loan and you have authorised or may in the future authorise a party (“authorised party”) to draw on such revolving credit loan or overdraft loan from time to time, you indemnify the bank against any claim that may be made against the bank for any loss of any nature that may be suffered by the company or any shareholder relating to or as a result of the operation of the revolving credit loan or overdraft loan by the authorised party.
You agree that we can provide information in writing to you, including any information that needs to be disclosed to you under the Credit Contracts and Consumer Finance Act 2003 to you in electronic form and by means of an electronic communication.
You also agree that we can provide information to you by way of the bank’s website.
Any notice or demand under a loan contract or authorised by the Property Law Act 2007 may be signed by us or by our agent and served:
A notice or demand will be properly served:
The posting, delivery or giving of a notice or demand shall be valid, even if at the date of service, you, whether to our knowledge or not, are dead, mentally incapable, bankrupt, in liquidation or absent from New Zealand or do not receive the notice or demand and despite anything else which might otherwise negate valid service.
The ways of service set out in this clause do not limit any other lawful mode of service.For the purposes of this clause, “registered post” includes any service that provides a system of recorded delivery and is similar in nature to a registered post service provided by a person as a postal operator under the Postal Services Act 1998.
We can at any time deduct from any account that you have with us, any amount that is overdue. We can do this even if you do not want us to.
By entering into a loan contract with us, you authorise us to collect, use and provide information about you for any purpose relating to your relationship with us and you authorise any other person to disclose information to us for that purpose. We do not need to first ask your permission each time we collect, use or provide information about you.
However, under the Privacy Act 1993, you have the right of access to and correction of personal information held by us.
If any parts of these terms are unenforceable then that does not affect the other parts and we can still enforce those other parts against you.
means TSB Bank Limited
means the person referred to as borrower in any loan contract and is also referred to as “you” and “your”
means any costs or payments of any nature which you are required to pay under any loan contract, loan document or these terms.
means the person referred to as covenantor in any loan contract and is also referred to as “you” and “your"
means the interest rate divided by 365
means the credit fees set out in the lending fees schedule
in respect of each loan contract is the date that the first drawdown is provided by the bank to you
means a failure:
means the default fees out in the lending fees schedule
means interest payable at the default rate
means the rate at which default interest is payable as set out in any loan contract
means the date that disclosure under the Credit Contracts and Consumer Finance Act 2013 is made to you
means a statement providing the necessary information to you as required by the disclosure provisions of the Credit Contracts and Consumer Finance Act 2005
has the meaning given to that term in the lending fees schedule
means the rate where the rate of interest is fixed for a fixed period
means the period during which the interest rate has been fixed at a fixed rate
means an agreement that creates or provides for a security interest over all of the assets of the party signing the agreement
means a separate form of deed of guarantee entered into by a third party in favour of the bank as a security
means a person that has executed a guarantee
means a statement provided to you prior to you entering into a loan contract providing the necessary information to you as required by the disclosure provisions of the Credit Contracts and Consumer Finance Act 2003
means, in respect of each loan, the balance owing at the time of entering into that loan contract
means a type of loan where the amount of principal in each payment remains the same throughout the term of the loan. However, the interest portion of each payment will vary depending upon the interest rate that applies and the amount of principal still owing
means the interest payable by you under a loan contract
means the rate of interest payable on any loan as set out in the relevant loan contract
means the document provided by the bank which sets out the credit fees and other charges applicable from time to time
means a loan provided to a borrower by the bank
means any contract setting out the terms of a loan provided by the bank
means an agreement that creates a charge over money in a particular bank account
means a loan contract, mortgage, general security agreement, specific security agreement, lien over account, guarantee and any other document entered into by a borrower or covenantor relating to a loan
means the schedule(s) attached to the loan contract setting out the terms of each loan
in respect of an overdraft loan, means the total amount that you can borrow
means a loan made available to a borrower that provides for a borrower to borrow, repay and re-borrow amounts up to an overdraft limit
means the dates that you are required to make payments as nominated by you and agreed to by us
means an individual, firm, company, corporation, an association of persons (whether corporate or not), trust, or governmental agency and any other entity (in each case, whether or not having a separate legal personality)
means all amounts advanced to you by the bank
means the date set out in any loan contract that all monies are required to be repaid by
in respect of a revolving credit loan, means the total amount that you can borrow
means a loan made available to a borrower that provides for a borrower to borrow, repay and re-borrow amounts up to a revolving credit limit
means each security interest described in a loan contract including any guarantee given as security in connection with a loan
means property of any nature which has been charged in our favour to secure obligations
means any mortgage, general security agreement, specific security agreement, lien over an account or other charge
has the meaning given to that term in the lending fees schedule
means an agreement that creates or provides for a security interest over specific assets of the party signing the agreement
means a type of loan where the amount of each payment throughout the term of the loan remains the same unless there is a change in the interest rate
means the period of a loan
means these loan contract terms
means demand being made by notice in writing and served on the borrower in the manner set out in these terms
means the housing variable interest rate prescribed by the bank from time to time
means a day (other than a Saturday or Sunday) on which registered banks are open for general banking business in the province in which the act is to be done
means in respect of a loan, the amount owing from time to time
Throughout these terms, we refer to various statutes. Those references include regulations made under those statutes and any amendments to those statutes or regulations and any new ones which replace those statutes or regulations.
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